SAFE Defence Fund

SAFE Defence Fund Latest News

Recently, the Italian government has requested €8 billion ($9.3 billion) from the European Union’s SAFE defence funding ​programme. 

About SAFE Defence Fund

• The Security Action for Europe (SAFE) instrument is a joint borrowing scheme backed by the European Union (EU). 
• The regulation setting up the SAFE instrument entered into force on 29 May 2025.
• It is aimed at boosting the bloc’s defence ​capabilities and helping member states meet new, ⁠more ambitious NATO spending targets.
• Focus: The assistance helps EU member states make rapid and significant increases in their defence investments through common procurement.
• Loan: Through this instrument, the EU is providing financial assistance in the form of loans worth up to €150 billion.
• Funding
  • The instrument finances urgent and large-scale investments in the European defence technological and industrial base.
  • Allocation of the budget is demand-driven.
  • Disbursements take the form of competitively priced long-maturity loans, to be repaid by the beneficiary EU member states.
  • While only Member States can obtain SAFE loans, the following countries may participate in common procurement: 
    • EU acceding, candidate, and potential candidate countries;
    • Countries that have signed Security and Defence Partnerships with the EU, such as Albania, Canada, India (signed in 2026), Japan, Moldova, North Macedonia, Norway, South Korea, and the United Kingdom.

Source: Reuters

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